Within the payments industry, it is standard to evolve as new technologies and methods emerge that replace outdated systems. Independent Sales Organizations (ISOs) need to know when payment industry changes occur so they can appropriately accommodate their current merchant relationships and make way to bring in new clients on board.
Here are three growing trends in 2016 that ISOs need to know and educate merchants on:
1. Data Security
As more merchants move their business functions to operating cloud functionality and away from local servers, data security has become more significant. A recent Verizon report done in 2015 concluded that 1 in 13 data breaches happen in retail.
As a result, the high-profile status of recent breaches within domestic retailers has brought a lot of attention to the issue of needing improved data security. ISOs need to keep up with changes in regards to security issues and stay familiarized with industry concerns. Doing so will allow ISOs to fully engage with their clients and help them overcome any anxieties related to security.
EMV has additionally raised concerns within the payment industry. With the liability shift now in the past, merchants are now more than ever under growing pressure to become EMV compliant and install EMV-capable solutions. Delaying implementation could result in the merchant being held primarily responsible for any counterfeit fraudulent charges that occur. With the start of these new guidelines and shift in responsibility, ISO agents need to not only become informed on the new EMV guidelines but also offer merchants the solutions they will need for a seamless integration.
3. Mobile Payments
Another area that has become increasingly important in the eyes of retailers is mobile payments. A 2015 report done by Walker Sands Communications found that 40 percent of those surveyed had used a mobile payment application within the past year.
For instance, Apple’s emergence into mobile wallets last year helped in delivering a safe and secure alternative solution to using a credit/debit card. Now in 2015, both Android and Samsung have released wallet capabilities, rounding out all of the major smart phone providers in producing a mobile wallet for their respected platform.
Due to the widespread adoption of smartphones and payment applications, ISOs have the perfect opportunity to encourage merchants to incorporate a mobile payment solution within their business operation.
The payments industry is an ever-changing business with technology becoming more advanced and more solutions for merchants going digital. ISOs need to have the motive to stay on top of various trends so they can educate not only their current merchant relationships but also foster potential merchants as well. By keeping up with security issues, informing merchants of the new EMV guidelines, and encouraging merchants to adopt mobile payments, ISOs can maintain a trusted relationship with their merchants and become a valuable source within the payments community.